About 80m euros won commercial banks in Kosovo during 2020

Reference to the recent Kosovo Central Bank report (BQK) on the financial system, it is seen that bank revenues were 279.3m euros, where 212.2m euros were in interest, and in December 2019 it was reported that the revenues were 263.2m euros.

As for bank spending, the report says 97.3m euros have been administrative spending, while 22.7m euros have been spending interest.

Meanwhile, expanding the lending activity of the banking sector continues to be supported by the performance of deposits, whose growth represents the main source of credit financing in the country.

The value of deposits up to this period amounted to 4.36 billion euros, compared with 3.91 billion euros a year earlier - an annual increase of 11.5 percent.

The effective interest rate for deposits in December 2020 is 1.5 percent, compared to the effective rate of interest in new loans is 7.1 percent, and it sets out 4.5 percentage points of”, the report says.

This high gap has influenced banks during this period to achieve very high profits. While the gap between interest in loans and deposits will be high, banks will continue to have many interest revenues and very little interest spending.

Bad loans according to the BQC report are currently 2.7 percent.

By December 2020, the banking sector registered a drop in non-aligned loans and improved their management with revisions. Their rate marked an increase of 2.7 percent from 2 percent in December 2019. The level of coverage of these profitable loans this month reached 141.4 percent”, the report explains.

Currently, 11 commercial banks operate on the Kosovo market, of which 9 are of foreign capital. The number of their branches 211, while these banks have 3,391 employees.